Northern Trust Corporation

Northern Trust Corporation has expanded its long-standing relationship with First Sentier Group by being appointed fund administrator and depositary for the First Sentier Investors Global Umbrella Fund Plc in Ireland, providing custody, depositary, fund accounting and transfer agency services for the approximately US$14.00 billion structure. This mandate, together with Northern Trust's earlier appointment to administer First Sentier's Singapore Global Growth Funds, deepens its role as an operating partner for a major international asset manager and reinforces industry momentum toward consolidating fund servicing with global providers. The expanded First Sentier mandate modestly supports Northern Trust's narrative of steady fee-based growth from global asset servicing, but does not change the most important near-term catalyst, which remains execution on automation and efficiency programs, nor the key risk around slower than market revenue growth. Northern Trust's narrative projects $10.1 billion revenue and $2.5 billion earnings by 2029, requiring 3.6% yearly revenue growth and about a $0.3 billion earnings increase from $2.2 billion today.

Popular, Inc. announced plans to increase its quarterly common stock dividend by 20% to 90 cents per share, payable in the fourth quarter of 2026 subject to board approval. The company also authorized a new $1 billion share repurchase program, having fully utilized its previous $500 million authorization as of June 30, 2026. Popular's liquidity remains robust, with short-term debt of $1.1 billion and no long-term debt against a liquidity balance of $4.9 billion. The dividend hike follows a 7.1% increase to 75 cents per share in August 2025, and the company has raised its dividend four times over the past five years at an annualized growth rate of 10.9%. Peers Northern Trust and M&T Bank have also strengthened shareholder returns, with Northern Trust raising its dividend 10% to 88 cents per share and M&T Bank authorizing a new $5 billion buyback program.

Northern Trust has partnered with Lukka to add a digital asset reporting function to its services. The new capability will provide clients with broader reporting on digital asset information, including transaction records and point-in-time balances with historical reference points. Northern Trust will use Lukka's platform to connect with more than 100 blockchains and over 400 centralized and decentralized exchange sources, as well as custodians, OTC desks, wallets, and on-chain activity. The arrangement supports standardized data aggregation and normalization across a wide network of blockchain systems and digital asset service providers. Northern Trust digital and financial markets strategic partnerships group head Justin Chapman said the relationship delivers a critical capability that brings together digital and traditional asset reporting.

Zacks Investment Research added five stocks to its Zacks Rank Number 1 Strong Buy list on August 6th. ASM International NV saw its next-year earnings consensus estimate rise 9.5% over the last 60 days. Northern Trust Corporation's current-year earnings estimate increased 8.3%. Texas Instruments Incorporated's current-year estimate rose 9%. CTO Realty Growth Incorporated's current-year estimate climbed 5.2%. ING Group NV's current-year estimate advanced 6.5%.

Northern Trust Corporation reported second-quarter 2026 net interest income of US$675.5 million and net income of US$792.2 million, while raising its quarterly dividend by 10% to US$0.88 per share and launching an employee stock award program called Invested as One. The earnings beat was driven by higher net interest income and stronger fee income, reinforcing the firm's asset servicing and wealth management franchise. The company's narrative projects US$10.0 billion in revenue and US$2.3 billion in earnings by 2029, with two community fair value estimates ranging from US$179.35 to US$205.18 per share. The dividend increase and employee ownership initiative signal confidence in sustaining improved margins and fee-based asset growth, though client activity and asset levels remain key risks.

Pre-market futures are in the red and sinking following a solid Tuesday session, pressured by higher spot oil prices due to hostilities at the Strait of Hormuz and new tariffs slapped on Canada this week. The Dow is down 93 points, the S&P 500 is down 28, the Nasdaq has fallen another 284 points, and the Russell 2000 is down 12. GE Vernova posted mixed second-quarter results, beating revenue estimates by 3.12% with $11.1 billion but missing earnings per share by 22% at $2.47 versus the $3.17 Zacks consensus estimate, partly due to $200 million in new tariffs on imported equipment, sending shares down 3% in early trading. Northern Trust and Moody's both outperformed earnings estimates by more than 10%, with Northern Trust up 1.25% and Moody's up 4.5% in early trading. After the close, Tesla, Alphabet, and IBM will report earnings, with Tesla expected to post a 25% gain in quarterly earnings and 14.7% revenue growth, Alphabet anticipated to deliver 24.24% earnings growth and 23.93% revenue growth, and IBM expected to show 4.64% earnings growth and 1.1% revenue growth.

Northern Trust Corporation reported second-quarter 2026 results that comfortably exceeded analyst forecasts, supported by higher fee income and a significant gain related to its participation in Visa's exchange offer. The company posted adjusted earnings per share of $4.23, well above the consensus estimate of $2.70, while revenue rose to $2.71 billion, surpassing expectations of $2.17 billion. Results included a $396.4 million after-tax gain from the second Visa, Inc. Exchange Offer, partly offset by a $54.4 million after-tax loss on the sale of debt securities and $109.9 million in after-tax charges related to software dispositions, severance costs, and a one-time equity award. Trust, investment and other servicing fees climbed 10% year over year to $1.35 billion, and net interest income increased 11% to $683.1 million. Assets under custody and administration expanded 11% to reach $20.0 trillion. Following the earnings release, Northern Trust shares gained 0.38% in premarket trading.

Northern Trust announced Invested as One, a new employee ownership initiative granting eligible employees up to 10 shares of common stock. The grant is available to employees globally who were working at the company as of June 30, 2026, with shares vesting on December 1, 2026. Chairman and CEO Michael O'Grady said the program reflects the firm's One Northern Trust strategy, making employees owners and aligning their interests with long-term value creation. Northern Trust is a leading provider of wealth management, asset servicing, and banking services, with $18.6 trillion in assets under custody and $1.8 trillion in assets under management as of March 31, 2026.

Northern Trust has been appointed by Invesco to provide administration, custody, and depositary services for a new Irish mutual fund range using swap-based index replication. The stock has returned 5.56% over the past 30 days, 16.03% over 90 days, and 32.60% year to date, with a one-year total shareholder return of 47.64% and a three-year return of 156.65%. At a last close of $184.68, the shares sit above a widely followed fair value estimate of about $179, suggesting the stock is roughly 3% overvalued. The valuation reflects concerns that investors may be overestimating the persistence of recent operational efficiencies given ongoing fee pressure from the shift to passive investing and ETFs.

Bank of America analysts expect all eight major US banks they cover to beat both their own and consensus earnings-per-share estimates when the sector reports, citing strong capital markets activity, resilient economic conditions, and improving wealth management flows. The firm highlighted potential upside in net interest income at JPMorgan and Citigroup, and stronger wealth management flows at Morgan Stanley and Northern Trust. Bank of America raised second-quarter EPS estimates for JPMorgan to $5.59 from $5.48, for Citigroup to $2.65 from $2.60, for Morgan Stanley to $2.81 from $2.71, and for Goldman Sachs to $14.11 from $13.18, while maintaining Wells Fargo's estimate at $1.72. The analysts noted that stronger underlying revenue trends could lead to broader earnings revisions even if investors often look past trading and investment banking beats.

Northern Trust has been appointed by Invesco to provide administration, custody and depositary services for its new Irish-domiciled index tracking mutual fund range, Invesco Markets V ICAV. The new fund range is designed to make Invesco's swap-based synthetic approach to index replication available to mutual fund investors in Europe via investment platforms and other institutional channels, a replication model previously offered only through Invesco's exchange-traded funds. The mandate extends Northern Trust's existing relationship with Invesco, building on its support of the firm's synthetic ETF platform and administration services for its digital assets platform. Invesco, headquartered in Atlanta, Georgia, had US$2.45 trillion in assets under management as of 31 May 2026. Northern Trust had US$18.6 trillion in assets under custody or administration and US$1.8 trillion in assets under management as of 31 March 2026.

Northern Trust has been appointed by TirNua Capital Partners to provide fund administration, depositary, and banking services for the firm's inaugural infrastructure fund. The fund recently secured €340 million in commitments at its first close and is dedicated to financing projects that support the transition to a low-carbon economy, with a primary focus on Ireland and other OECD markets. TirNua, a Dublin-based private markets manager, is an independent joint venture between Irish Life Investment Managers and a global private markets firm. The fund plans to target various infrastructure sectors, including renewable power, energy efficiency, clean transportation, and renewable fuels. Northern Trust will support the fund throughout the investment lifecycle, providing a full suite of asset servicing solutions as TirNua works to deploy capital into critical infrastructure projects that promote sustainable economic growth.

Northern Trust has outperformed the S&P 500 by 14.4% over the past six months, with its stock price climbing 22.9% to $176.96. The company's earnings per share grew at a 10.7% compound annual rate over five years, outpacing its 6.5% annualized revenue growth, signaling improved profitability. Northern Trust also posted a five-year average return on equity of 13%, above the sector average of around 10%, indicating a competitive moat. However, its long-term revenue growth of 6.5% annually was mediocre relative to the financials sector. The stock currently trades at 16.1 times forward earnings.

Northern Trust Corporation has consistently beaten earnings estimates, with an average surprise of 13.92% over the past two quarters. In its most recent quarter, the company reported earnings of $2.71 per share, surpassing the Zacks Consensus Estimate of $2.37 per share by 14.35%. The prior quarter saw earnings of $2.69 per share against an estimate of $2.37 per share, a 13.50% beat. The company currently holds a Zacks Rank #2 (Buy) and a positive Earnings ESP of +1.96%, a combination that historically produces a positive surprise nearly 70% of the time. Northern Trust's next earnings report is expected on July 22, 2026.

Custody banks State Street, BNY Mellon, and Northern Trust are trading near all-time highs, significantly outperforming the broader banking sector. State Street is up 32% this year, BNY Mellon has gained 26%, and Northern Trust has rallied 29%, while the KBW Nasdaq Bank Index has risen just over 12%. The rally is driven by a flight to safety among large institutional clients during volatile markets, boosting assets under custody and fee income, along with higher net interest income from short-term investments. BNY Mellon, the largest custodian with $59 trillion in client assets, reported record first-quarter revenue of $5.4 billion, up 13% year over year, with net income spiking 36% to $1.6 billion. All three firms are set to report second-quarter earnings in the coming weeks, with BNY Mellon on July 15, State Street on July 16, and Northern Trust on July 22.

Northern Trust Corporation currently holds a Momentum Style Score of A and a Zacks Rank of #2 (Buy), indicating strong near-term potential. Shares have risen 1.02% over the past week and 3.9% over the past month, while gaining 22.04% over the last quarter and 37.95% over the past year, outpacing the S&P 500. The stock's average 20-day trading volume stands at 1,095,135 shares. Earnings estimates have also improved, with four upward revisions for the full year boosting the consensus estimate from $10.63 to $11.21 over the past 60 days, and four upward revisions for the next fiscal year with no downward revisions.

Northern Trust announced plans to raise its quarterly common dividend 10% from 80 cents to 88 cents per share following the Federal Reserve's 2026 stress test results, subject to board approval. The stress test confirmed the company remains well-capitalized under a severely adverse scenario, providing flexibility to return excess capital to shareholders. The company also reiterated it will continue repurchasing shares opportunistically under an existing 25-million share program with no expiration date, of which 1.64 million shares remained available as of March 31, 2026. As of that date, Northern Trust held $41.7 billion in Federal Reserve and other central bank deposits against total debt of $10.7 billion, underscoring a strong liquidity position. The dividend increase follows a 6.7% hike last year and reflects a payout ratio of 33%.

Northern Trust Corporation is expected to report fiscal second-quarter 2026 earnings per share of $2.63, a 23.5% increase from $2.13 in the same quarter last year. The company, which manages $18.6 trillion in assets under custody and administration and $1.8 trillion in assets under management, will announce results before the market opens on Wednesday, July 22. Analysts forecast full-year fiscal 2026 EPS of $10.72, up nearly 19% from $9.01 in fiscal 2025. Northern Trust stock has surged 41.4% over the past 52 weeks, outperforming the S&P 500 Index's 19.8% return and the State Street Financial Select Sector SPDR ETF's 3.4% gain. The company beat earnings estimates in each of the last four quarters, including a first-quarter 2026 EPS of $2.71 driven by improved credit quality and a 15% rise in net interest income to $661.6 million.

The Motley Fool compares Northern Trust and S&P Global as investment options for 2026, ultimately favoring Northern Trust for its growth potential and cheaper valuation. Northern Trust reported fiscal 2025 revenue of approximately $8.1 billion, a nearly 3% decline, with net income of close to $1.7 billion and a net margin of roughly 21%. S&P Global generated about $15.4 billion in revenue, up nearly 8%, with net income of nearly $4.5 billion and a net margin of about 29.2%. Northern Trust trades at a forward price-to-earnings ratio of 16.5 times and a price-to-sales ratio of 3.9 times, compared to S&P Global's 20.9 times and 7.9 times, respectively. The analysis highlights Northern Trust's projected 20% revenue growth and 23% net income increase in 2026, driven by expansion in family office services and alternative assets, while S&P Global is expected to grow revenue by about 8%.

Northern Trust has been appointed by TirNua Capital Partners to provide fund administration, depositary and banking services for the firm's inaugural infrastructure fund focused on supporting the transition to a low carbon economy. The fund has secured €340 million in commitments at first close. TirNua is a Dublin-based private markets investment manager formed through a joint venture between Keyridge Asset Management, trading as Irish Life Investment Managers, and an affiliate global private markets investment firm. The fund aims to invest primarily in opportunities that support Ireland's transition to a lower-carbon economy, as well as in other relevant OECD markets, targeting sectors including renewable power, energy efficiency, renewable fuels, clean transportation and other infrastructure.

Northern Trust Corporation shares have surged 28.1% year-to-date, outpacing the Dow Jones Industrial Average's 7.1% gain. The stock has climbed 59.6% over the past 52 weeks, compared to the Dow's nearly 22% return. Shares rose more than 8% on April 21 after the company reported first-quarter 2026 earnings per share of $2.71, beating expectations, driven by a negative provision for credit losses of $3 million and a 15% year-over-year increase in net interest income to $661.6 million. Despite the strong performance, analysts maintain a consensus Hold rating with a mean price target of $173.31, and the stock is currently trading above that level.